answer the question 12 a and b and c

12. LUCA Bank, NA uses dollar GAP management. The follovwina ed on a one year time RSA (1096) lRSL (8%) 4.000 I FRA (12%) $6.000 a. Calculate the pre-tax profits in the GAP section of the Balance Sheet only Show all calculations for the GAP profits including all inputs( and dollar amounts) used. (8 points) b, Management expects interest rates to increase by 1% (100 basis points) GAP. Recalculate the pre-tax profits for the GAP only. Show all calculations for the GAP profits including all inputs (interest rates and dollar amounts) used. (3 points) FRL $6,200 in anticipation of the rise in rates. Recalculate the pre-tax profits (using the forecasted rates from part b) for the GAP only. Show all calculations for the GAP profits including all inputs (interest rates and dollar amounts) used. (6 points) c.. Now assume management shifts the liabilities mix so that RSL $3,800 and 12. LUCA Bank, NA uses dollar GAP management. The follovwina ed on a one year time RSA (1096) lRSL (8%) 4.000 I FRA (12%) $6.000 a. Calculate the pre-tax profits in the GAP section of the Balance Sheet only Show all calculations for the GAP profits including all inputs( and dollar amounts) used. (8 points) b, Management expects interest rates to increase by 1% (100 basis points) GAP. Recalculate the pre-tax profits for the GAP only. Show all calculations for the GAP profits including all inputs (interest rates and dollar amounts) used. (3 points) FRL $6,200 in anticipation of the rise in rates. Recalculate the pre-tax profits (using the forecasted rates from part b) for the GAP only. Show all calculations for the GAP profits including all inputs (interest rates and dollar amounts) used. (6 points) c.. Now assume management shifts the liabilities mix so that RSL $3,800 and